G7 countries have agreed to release 100 million barrels of diesel and crude oil from emergency reserves on Friday, October 2 follwoing a call from US President Donald Trump, who seeks cool off rising fuel prices linked to the US-Iran war.
In a statement issued on Friday, the group of countries said, “We, the Leaders of the G7, convened a virtual meeting to address the deepening challenges to our energy security. Facing unprecedented volatility in oil markets – with surging prices threatening economic stability and the well-being of our citizens – we have agreed on decisive, coordinated measures to stabilize immediate energy supplies, shield households and businesses from price shocks, and strengthen the long-term resilience of global energy systems.”
G7 said it will coordinate with the International Energy Agency (IEA) to release 100 million barrels of oil from emergency reserves over four months, beginning immediately. The release will include a substantial front-loaded supply of diesel within the first 20 days, with G7 members and partners set to discuss additional diesel releases through the IEA if necessary.
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The G7 comprises of the US, UK, Canada, Japan, Germany, Italy and France, with the EU represented at its meetings.
The group emphasised its commitment to refrain from export restrictions on energy and energy products between G7 countries and call on all producers to avoid from imposing bans that could lead market tensions.
The development comes after Trump had warned to ban diesel exports from the US if European allied did not agree to release more of their own stocks.
In a post on social media, he said, “Europe has just agreed to release a massive amount of their heavily stocked Diesel Oil. The process will begin immediately.”
The G7 furtjer said, “We invite the IEA to monitor the impact of these measures on energy security and market stability and to monitor implementation of commitments. A follow-up report should be delivered before 20 days, include actionable recommendations to enhance future responses, including stocks replenishment.”
The G7 countries also condemned alleged attacks by Iran against its regional neighbours and its disruption of international trade, energy security and the global economy. It called for the immediate and full restoration of navigational rights and principles in the Strait of Hormuz and express our determination to redouble our collective efforts to that end. We commend the United States for its efforts to ensure the free flow of commerce through the strait of Hormuz.
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